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Mon, 11 Aug 2008 10:52:22 -0000

Tags: africa extractive energy industry petroleum

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DRC: Mining multi-nationals get deal of the century

Fri, 01 Aug 2008 10:16:39 -0000

DRC: Mining multi-nationals get deal of the century

Highlights and Sticky Notes:

Corruption

DRC: Mining multi-nationals get deal of the century

2008-07-18

http://www.pambazuka.org/en/category/corruption/49569

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There is potentially enormous mineral wealth in the DRC province of Katanga. In exchange, investors from all over the world, and especially China, are prepared to offer money and infrastructure to revive the DRC after 15 terrible years of war and invasion. The potential for ecological disaster, social exploitation and corruption is almost limitless.
Le Monde diplomatique
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July 2008 MINING MULTINATIONALS GET DEALS OF THE CENTURY

Copper colony in Congo

There is potentially enormous mineral wealth in the DRC province of Katanga. In exchange, investors from all over the world, and especially China, are prepared to offer money and infrastructure to revive the DRC after 15 terrible years of war and invasion.
The potential for ecological disaster, social exploitation and corruption is almost limitless.

by Colette Braeckman

Lubumbashi is the capital of Katanga, the southernmost state of the Democratic Republic of Congo (DRC). Day and night, huge trucks roar through its streets, making for the nearby Zambian border with cargoes of copper and cobalt on their way, via the Tanzanian port of Dar es Salaam, to Asia. Every month new stores open: fast food joints with American names, and shops where the locals stare in wonder at Chinese consumer goods, finally within their reach.

Lubumbashi is the capital of Katanga, the southernmost state of the Democratic Republic of Congo (DRC). Day and night, huge trucks roar through its streets, making for the nearby Zambian border with cargoes of copper and cobalt on their way, via the Tanzanian port of Dar es Salaam, to Asia. Every month new stores open: fast food joints with American names, and shops where the locals stare in wonder at Chinese consumer goods, finally within their reach.

And there is a third, social threat. The small-scale exploitation of mineral deposits is coming to an end as the big multinationals move in, driving out independent miners.
Until a few months ago the Étoile mine at Ruashi, a few kilometres outside Lubumbashi, was just an open pit where men worked unprotected. Children scurried through unsupported tunnels, pulling out rocks striated with green copper or yellow cobalt and cramming them into jute sacks. Cave-ins and fatalities were so frequent that the miners had their own mutual insurance scheme to cover hospital or funeral expenses.

The terms granted to private companies associated with Gécamines took the commissioners aback. The investment of external partners was systematically overvalued and that of the Congolese (the value of mineral deposits and existing Gécamines infrastructure) underestimated. Fiscal and para-fiscal concessions (such as 30-year tax exemptions) deprived the state of essential revenues. Mining rights were acquired for purely speculative ends (the partners sold the shares on the stock exchange before even starting work on the ground), while social and environmental clauses were ignored, local skills undervalued, local workers underpaid and concession boundaries extended without authorisation.

Unlike western governments, incapable of releasing the credits necessary for the reconstruction of a country four times the size of France, China has been quick to get down to work: several projects have already begun in Katanga, Kivu and Kinshasa, where 250km of roads and 1,000 units of social housing are to be built. The people's hopes are undermined by fears that the arrival of Chinese workers and engineers heralds a new wave of colonisation. The unconcealed displeasure of the West, Belgium especially, could endanger the stability of the government. But the Congolese government is determined to pursue its relationship with China.

Tags: china katanga africa extractive industry

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CommDev: Community Development 101: Opportunities and Challenges of Extractive Industries

Thu, 31 Jul 2008 10:02:53 -0000

Tags: community development industry extractive csr

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BIC's new handbook for advocacy on extractive industry revenues | Bank Information Center: Monitoring the projects and policies of the World Bank, IMF and other international financial institutions

Sun, 06 Jul 2008 10:53:36 -0000

The Handbook is intended as a tool for civil society organizations, journalists and other members of the public interested in learning more about transparency and fiscal management in the natural resource sectors. It distills and builds upon information contained in the IMF’s document, with a focus on areas especially pertinent for civil society groups seeking to better understand how extractive industry (EI) sectors are managed. The Handbook aims to help civil society groups hold governments and private companies accountable for the exploitation of natural resources in their country.[2]

In producing this Handbook, BIC is not endorsing the extractive industries or asserting that improved transparency, alone, would address the myriad social, environmental and economic impacts associated with natural resource exploitation. Rather, this document aims to provide citizens in resource-rich countries with one more tool to strengthen their efforts to hold industry actors and governments accountable.

Tags: extractive bic international finance development

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Manufacturing Consent - World Bank to Keep Funding Oil, Mining and Gas — Friends of the Earth International

Tue, 01 Jul 2008 10:59:16 -0000

Tags: extractive industries world bank foei

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Halifax Initiative > Letter to James Wolfensohn on the World Bank Extractive Industry Review

Tue, 01 Jul 2008 10:49:24 -0000

Tags: eir extractive industries world bank

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Halifax Initiative > Call to adopt the World Bank's own recommendations for extractive industries (March 2004)

Tue, 01 Jul 2008 10:48:13 -0000

Tags: eir extractive industries world bank

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Halifax Initiative > Letter to the Honourable Ralph Goodale - July 6, 2004

Tue, 01 Jul 2008 10:45:10 -0000

Tags: eir extractive industries world bank

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Extractive Industries Review (EIR) Recommendations to the World Bank - Environmental Defense Fund

Thu, 05 Jun 2008 00:28:41 -0000

Highlights and Sticky Notes:

www.eireview.org.

Replace with: http://iris36.worldbank.org/domdoc/PRD/Other/PRDDContainer.nsf/All+Documents/85256D240074B56385256FF6006843AB/$File/volume1english.pdf posted by pickinjava

During the EIR review process, the World Bank was unable to provide a clear example where poverty was alleviated as a direct result of one of its investments in the extractive industries.

It is true that investment in the extractive industries has been on a general decline over the last few years, but the share of support for investing in the private sector through IFC and MIGA has increased. In some regions, like Africa, investments in extractive industries representative the vast majority of that continents development support. Regardless, the World Bank Group sets the standards and best practice for the extractive industries globally. Even if the direct investments are a small percentage of the World Bank's overall investments, the approach the World Bank adopts will have a ripple effect beyond its own direct investments.

these recommendations require the World Bank Group to respond as one institution since each of its arms -- IBRD, IDA, IFC and MIGA -- support the extractive industries through a variety of mechanisms. We are looking to the World Bank Group to take a serious and comprehensive approach to the EIR recommendations and adopt them fully and in a timely fashion.

Tags: eir edf world bank extractive

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